Roku Inc. (ROKU) PT Raised to $65 at Needham & Company

Needham & Company analyst Laura Martin raised the price target on Roku Inc. (NASDAQ: ROKU) to $65.00 (from $45.00) while maintaining a Buy rating.

Martin commented, "Roku reported a beat and raise quarter, over-delivering 4Q18 at revenue of $275mm (up 46% y/y and 5% above our estimate), with overdelivery mostly from the Player segment, which reported revenue up 21% y/y (14% above our estimate). Roku reported positive EBITDA of $24.5mm, up 70% y/y and 40% above our estimate, and EPS of $0.05 vs our $0.03 estimate. Roku raised FY19 revenue guidance but lowered EPS guidance for FY19. The Roku Channel drove 2018 upside. Roku's total streaming hours rose 60% y/y (to 24B), active users rose 7.8mm (to 27mm), and ROKU doubled its monetization of ad impressions during 2018. More than 1 in 4 smart TVs sold in the US in 2018 were Roku TVs. Roku believes it reaches 10mm homes that do not have a linear TV bundle, implying advertisers can only reach these viewers on Roku."

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